Financial Literacy Quiz Welcome to your Financial Literacy Quiz Email What is a budget? a) The cost of borrowing money b) The return on investment c) A plan outlining expected income and expenses d) The rate at which prices rise over time 1 out of 10 What is interest? a) The cost of borrowing money b) The return on investment c) A plan outlining expected income and expenses d) The rate at which prices rise over time 2 out of 10 What is inflation? a) The cost of borrowing money b) The return on investment c) The return on investment d) The rate at which prices rise over time 3 out of 10 What is a credit score? a) The cost of borrowing money b) The return on investment c) A numerical representation of creditworthiness d) The rate at which prices rise over time 4 out of 10 What is an investment? a) The return on investment b) The cost of borrowing money c) A plan outlining expected income and expenses d) Allocating money to generate income or profit 5 out of 10 What is debt? a) Money set aside for retirement b) Money owed to a lender or creditor c) A specific financial goal d) The value of an investment over time 6 out of 10 What is compound interest? a) Interest earned on the initial principal amount only b) Interest earned on any interest already earned c) The cost of borrowing money d) The return on investment 7 out of 10 What is an asset? a) Money owed to a lender or creditor b) A payment card for making purchases on credit c) Something of value owned by an individual or entity d) Spreading investments across different assets 8 out of 10 What is diversification? a) The rate at which profit is earned b) The return on investment c) Spreading investments to reduce risk d) The rate at which prices rise over time 9 out of 10 What is net worth? a) The difference between assets and liabilities b) The return on investment c) A plan outlining expected income and expenses d) The rate at which prices rise over time 10 out of 10 Time is Up! Time's up
